LONDON, Dec. 29 -- Saipem SPA has received a $328.6 million contract from the DBP Group to expand the Dampier-Bunbury pipeline in Western Australia by first quarter 2008. The contract signals further capital expenditure in electric power generation and value-added processing in southwestern Western Australia (OGJ Online, Feb. 21, 2006).
Saipem will design, install, and precommission 570 km of nominal bore pipeline and associated facilities. Construction will occur alongside half the existing mainline, Saipem said. The proposed Stage 5A expansion will handle an extra 100 TJ/day of natural gas.
Saipem originally built the Dampier-to-Bunbury pipeline in the 1980s.
In September, DBP Group said the timing of Stages 5B and 5C depends on a range of issues, including the price and availability of gas to support new resource processing and power generation developments.
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